Damsel Inc

question 100

Multiple Choice

Damsel Inc. is a large manufacturer of auto tires. Damsel has provided the following information: Calculate the amount of ending finished goods inventory reported in Damsel's balance sheet.

• A)$10,500
• B)$36,500
• C)$4,000
• D)$3,500

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Definitions:

Manufacturing Overhead

The indirect factory-related costs that are incurred when producing a product, including costs related to management, utilities, and equipment depreciation.

Direct Labor-Hours

The total hours worked by employees who are directly involved in the manufacturing process and whose work can be easily traced to the product.

Manufacturing Overhead

All production costs other than direct labor and direct materials, which are incurred in the manufacturing process.

Direct Labor-Hours

An accounting term indicating the hours of work performed by employees directly involved in the creation of goods or services.